Question

Which rules must a prospectus follow?

Options

• Rules of issuing houses, stock brokers and registrars

• Rules of existing shareholders, institutional investors and selected individuals

• Rules of the Companies Act, Investor Protection Act and SEBI

• Rules of banks, insurance companies and mutual funds

Answer 1

A prospectus must follow the rules of the Companies Act, Investor Protection Act and SEBI. These requirements apply to the prospectus used to invite the public.